Essity CEO Kolsrud launches major overhaul to boost growth
Hygiene products maker Essity AB on Thursday announced a major corporate overhaul that includes a new organizational structure and a cost-savings program aimed at boosting profitable growth.
The plan is the first major strategic move under CEO Ulrika Kolsrud, who took the helm in June, and follows a recent quarter where the company reported a drop in profit and sales.
Essity said it will reorganize into four business areas: Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene, a move designed to decentralize decision-making.
The changes, which take effect on January 1, 2026, will split the current Consumer Goods business area into two new units, the company said.
"Today, we’re launching measures to create better conditions for Essity to increase its growth rate going forward and to faster achieve our targets,” President and CEO Ulrika Kolsrud said in a statement.
The company is also launching a cost-savings program targeting 1 billion Swedish Kronor in annual savings by the end of 2026, primarily from sales and administrative expenses.
Essity said the savings will be reinvested to drive volume growth and that the program will result in workforce reductions, with restructuring costs to be reported by the end of 2025.
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Hygiene products maker Essity AB on Thursday announced a major corporate overhaul that includes a new organizational structure and a cost-savings program aimed at boosting profitable growth.
Essity AB reported a drop in second-quarter profit and sales, citing a weak economy and unfavorable currency effects in the first earnings report under new Chief Executive Ulrika Kolsrud.